Target Benefit Plan

[Guest GMec]

Not being too familiar with Target Benefit Plans, is it common practice on a participant's termination of employment, prior to NRA (participant is age 41) for the Plan to purchase the annuity and distribute the annuity to the participant? Participant has elected to defer payment until NRA, I would think the Plan would wait until his claim for benefits at age 62 before purchasing the annuity in case he is re-employed, gets married, changes his mind on form of benefit, etc. I would appreciate any comments or thoughts.

[WDIK]

is it common practice on a participant's termination of employment, prior to NRA (participant is age 41) for the Plan to purchase the annuity and distribute the annuity to the participant?

In my experience, this approach is very uncommon.